Remodel and revive properties, assess all applicable ADU ordinances, oversee all construction, engineering, plumbing, quickly fill units, fetch top rents and manage your property to its best possible ROI.
Grow Your Rental Income with ADUs
What is an ADU?
How to Get Started
- Step 1: Identify space or location to build or remodel your ADU
- Step 2: Check with all local, state, and federal laws governing ADUs to make sure your project is in compliance.
- Step 3: Construction. Choose an experienced resource to help bring your project to life.
- Step 4: Rent your new ADU building at market value to see the highest ROI
Ready to add to your rental income with ADUs?
The BFPM Team Is Here to Help
What We’ll Do For You
- Rules & Regulations: We will assess all applicable ADU ordinances to determine how to maximize income once your new ADUs are complete.
- Planning, Design, & Construction: Our team will oversee all construction, engineering, plumbing, etc. plans to ensure your ADUs are built correctly and ready to rent.
- Leasing & Management: Once your new ADUs are ready to lease, we will handle all aspects of attracting the right residents and managing your property to its best possible ROI.
The Cost-Benefits of Building ADUs on Multifamily Properties
- While the cost of building new accessory dwelling units in your existing multifamily property may be in-line with a larger-scale renovation or construction, the short and long-term benefits can be substantial.
- Short term, as soon as your new units are finished, they can be rented quickly and start adding income.
- Long term, if you decide to sell your property, it will fetch a higher price with the additional units and the increased rental income.
The key highlights of the new state ADU law are summarized below:
|ADU applications must be approved within 60 days, without a hearing or discretionary review||For ADUs permitted by 2025, cities/counties cannot require the owner to live at the property|
|No impact fees are required for ADUs under 750 sq ft; proportional fees apply to larger ADUs||An ADU can be developed at the same time as a primary dwelling, with no additional hearing|
|A city/county must delay code enforcement on an unpermitted ADU to allow it to be legalized||Single-family HOAs must allow the development of ADUs, subject to reasonable standards|
|Single-family homeowners can also develop JADUs—units under 500 sq ft within a residence||An ADU or JADU converted from existing space in the home or another structure (e.g., a garage), so long as the ADU has exterior access and setbacks sufficient for fire safety|
|A new detached ADU under 800 sq ft in size, 16 feet in height, with 4-foot side/rear setbacks||Multiple of the above options to create one internal JADU and an internal or detached ADU|
Frequently Asked Questions(FAQs)
While the cost of building new accessory dwelling units in your existing multifamily property may be in-line with a larger-scale renovation or construction, the short and long-term benefits can be substantial. As soon as your new units are finished, they can be rented quickly and start adding income. Long term, if you decide to sell your property, it will fetch a higher price with the additional units and the increased rental income.
An ADU must have at least 150 square feet of living space. The maximum squarefootage for a one-bedroom ADU is 850 or 1,000 for a two+ bedroom unit. Some cities and counties in CA will allow up to 1,200 square feet for a multi-bedroom ADU.
You can build up to 2 detatched ADUs. Or, you can covert existing, internal space into ADUs up to 1 for every 4 existing units you currently have.
You cannot sell an ADU separately from the rest of the property. However, if or when you do sell the whole property, an ADU can add value.
California laws supercede HOA rules. So in many cases, HOAs cannot prevent homeowners from building an ADU on their poperty. However, it's important to comply with HOA policies on paint colors, etc. and follow rules about where ADUs can be placed with the property line.
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